Real Estate Again Defies Doom Merchants

“The underlying strength of New Zealand real estate continues to prove itself. Overall, it remains well up on last year, and comfortably up on the previous month. Any pundits preaching doom and gloom back in March and April are still miles off being proven right,” says Derryn Mayne, Owner of Century 21 New Zealand.

Her comments follow REINZ today releasing its Monthly Property Report for June which shows median house prices across New Zealand up by 9.2%, compared to June 2019. At the same time, nationwide median prices compared to May were up by 3.1%. REINZ has confirmed that June marks 105 months in a row of year-on-year median prices increases.

“Amazingly, every region has seen an increase on 12 months ago, with 10 out of 16 regions lifting since May. The fact that the wider Waikato region achieved a record annual price increase of 17.1% reflects what we’re hearing. Century 21 offices in Tuakau, Huntly, Te Awamutu, Mangakino, and Turangi are telling us buyer demand remains strong and some great prices are still being achieved,” says Ms Mayne.

REINZ also reported the volume of properties sold in June across New Zealand increased by 7.1% from the same time last year – representing the highest number of properties sold in a June month for four years. Listings are also up – again to a four year high for June.

“It’s positive news for overall sales prices, as well as the number of transactions and new listings. However, our agents are still screaming out for more stock. Demand is strong helped by record-low interest rates, many expats returning, lower deposits now required, and a spike in overall confidence since the country successfully managed Covid-19.”

The Century 21 boss says while it’s a case of ‘so far, so good’ the industry is conscious that the six-month mortgage holidays are coming to an end, as is the second round of wage subsidies.

“There is a still a lot to play out, and of course we have a General Election in two months which normally slows activity. If I were contemplating selling my property, I wouldn’t be waiting for spring or summer, I’d be going now with all the market fundamentals in great shape,” says Derryn Mayne.

www.century21.co.nz

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